Is it possible to convert a personal pension account to a 401K?
That way the company can't do an Enron and steal the money?
2007-02-08 05:06:05 · 1 answers · asked by Indiana Jones 6 in Business & Finance ➔ Personal Finance
Not sure what you mean....Are you asking if a company can convert their defined benefit plan into a 401(k) plan? Answer is no...but they can terminate their DB plan and the participants can roll their money into the 401k.
But, that's not what ENRON did...Enron invested plan assets in their own stock...not allowed anymore. Enron also failed to fully fund the pension...while still allowed there are measures in place to limit this.
Lastly, there are 401k's that are raided and stolen all the time. Not typically by large companies but small ones that don't have proper oversight. At least with the Pension plan you have Actuaries looking at it on an annual basis.
2007-02-08 06:47:01 · answer #1 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋